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The shape of the new Greek coalition

MARK COLVIN: World financial markets appear relieved at the results of Greece's elections. The pro-bailout New Democracy party in Greek elections - in the elections polled strongly enough to ensure that it can lead a workable coalition.

Dimitrios Sotiropoulos is associate professor of political science at the University of Athens. I asked him what kind of coalition New Democracy would put together.

DIMITRIOS SOTIROPOULOS: Well there are two options. one, would be a coalition government of two parties, the centre right party who won yesterday's elections along with the party which came third, the PASOK party, the former government party which is a socialist party.

The other option is that these two parties are joined by a third party which is small but strongly pro-European left party.

MARK COLVIN: What's that called?

DIMITRIOS SOTIROPOULOS: This is called Democratic Left. And it's a split-off party from SYRIZA, this radical left party. That happened two years ago when SYRIZA took a very, very sharp left-wing turn. So, pro-European leftists left SYRIZA and organised themselves into this smaller pro-European left party.

MARK COLVIN: I saw an early quote from the head of PASOK saying that he wouldn't join a coalition unless a number of other parties were involved, including SYRIZA. Was that just a bargaining chip as it were?

DIMITRIOS SOTIROPOULOS: That is probably correct, because this morning apparently the PASOK Party seems ready, under some conditions, to join the New Democracy Party in a coalition. Both the winner and the socialist party would like to have, however, a more stable, larger base in parliament. This is why they would probably try to drag the smaller left-wing party to their side.

MARK COLVIN: And SYRIZA, which was the really anti-European party if you like, or certainly anti-austerity party, that's basically out of government?

DIMITRIOS SOTIROPOULOS: This is correct. And it's also notable that SYRIZA, from the first moment after the election results were announced, decided that it only wants the position of the opposition in parliament. It made no moves to suggest that it would like to participate in any kind of government.

MARK COLVIN: And I guess that's pure politics really, it's going to better, it's calculating anyway, that it's going to maximise its vote over time by being in opposition?

DIMITRIOS SOTIROPOULOS: That is correct indeed. It's pure politics, we're not sure if it's going to maximise its votes in the next elections a few years down the road. That decision basically is not to participate in government is based obviously first on the grounds that it is really very different with regard to how it treats the problem of the austerity compared to New Democracy and PASOK.

And secondly, SYRIZA is a party that feels comfortable when it mobilises resistance and opposition both in the parliament and outside the parliament. It's not a party that has any experience in governing, so it would be really difficult for that party to assume government responsibility with no expertise.

MARK COLVIN: But it will be in opposition against what's effectively a government of national unity I suppose, but one which is opposing extreme austerities. So that's going to mean a lot of pain and that generally means good times for the opposition doesn't it?

DIMITRIOS SOTIROPOULOS: I would like, if I could, to modify the statement of extreme austerity. The new government, regardless of whether it's composed of two or three parties, will have as the first item in its agenda to renegotiate the most harsh, so to speak, austerity measures in the current bailout package.

So SYRIZA has won, let's say, a victory over the policy agenda by pushing all other parties, including the winners of yesterday's election, to think along terms of changing or trying to change the most hard aspects of the austerity policy.

So we expect that the European Union on its part will also try to give a grace period to the new government, and perhaps somewhat relax the time period within which very difficult structural reforms will take place.

MARK COLVIN: Sure, but given the size of the debt, there just aren't going to be any really easy options are there?

DIMITRIOS SOTIROPOULOS: There are no easy options. But the current option, which includes very, very quick and simultaneous reforms within the span of the next 18 months, it seems to be ineffective. We need more time.

MARK COLVIN: Dimitrios Sotiropoulos, associate professor of political science at the University of Athens.